Transcripts For CNBC Squawk Box 20240712

Now more than 47 off the march low. The nasdaq closed at the record highs as well. This morning, seeing give back the dow indicated down by 345 points the s p indicated off 35 and the nasdaq off by 70 points. If youve been watching cha is happening with treasury yields, a lot happening. The 10year at 0. 82 we had been at 0. 9 . We had been at 0. 7 . We are seeing a little give back with oil prices seeing wti down just 0. 5 . We have another big show. Three squawk exclusive interviews taking place. Finding solutions for economic racial inequality. The highlight is ceo of e sen sur. And from barrons with a lot to say. Dick parsons will be joining us. A lot on tap thank you getting an update now on the reopening. Movie theaters in california can reopen on friday only if they obtain approval from county officials requiring imposing safe guards including limited attendance to 25 or 100 people, when whichever is lower. New york mayor bill de blasio is planning to make parts of manhattan, busonly cord i doors and the Trump Campaign is gearing up to Start Holding rallies. They are still determining where and how rallies can be safely held the last Campaign Held on march 2 in North Carolina before joe biden became the democratic nominee. Stocks to watch today, macys has raised 4. 5 billion in new debt. The money will allow it to survive the pandemic with funding and purchasing new inventory. That stock is up around 4 it had risen from those lows that were down around 5 andrew stitch fix, those shares are falling because they errored a decline of 9 as their supply chain hit a snag it expects to clear order back log by the end of the month. Reporting 3. 4 million active clients. 9 increase but given everything going on with the pandemic, it should be the online retailers that are winning part of it was the back log story. Some think they should have done better but then again, are people buying clothes when people are stuck at home. Tailored brands reportedly filing for bankruptcy. The owner of joseph a. Banks and other brands what is the slogan you are gonna like how you look which is nice. There are days i dont feel particularly pretty or handsome. It affects your mood, your swagger, your delivery right . Are you not going to agree with me, andrew i agree 100 . Im in agreement. You want to like how you look . You dont care . We all want to like how we look you are up on the north 40. You want to look good for the fam. Thats stitch fix the reason you probably saw the decline. Personal stylist to help you figure out what you want to wear nobody is going anywhere the things that were selling were path ammas, athletic wear nobody is getting all fixed up and dressed up it is coming. When i venture out, im going to look out of my going to break out of the abc pants . No. Not getting out of those you should go to mens warehouse. Youll like the way you look compared to an ounce of gold or barrels of oil, it is much cheaper. You can get two suits like for like 300. You used to. I bet you ka these days for stayathome, who needs a suit anyway, when we come back, covid cases ticking higher in more than a dozen states at least two states are hitting record high numbers for hospitalizations dr. Scott gottlieb will join us with more of what this means take a look at shares of two dow components apple and home depot both up year to date can you see those gains there. Squawk box will be right back. With decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back more than a dozen u. S. States have seen confirmed cases of covid increase in texas more than 1,900 hospitalized patients topping the may record texas was one of the first states to relax the stayathome order allowing some businesses to resume operations on may 1. North carolina also has its highest level yet. Both texas and North Carolina are in the top 10 of infected spread with each infected person affected one other according to the data florida is also seeing a rise of new covid cases. The number is up 46 over last week with more than 1,000 new infections and each of the last five days. The state has also ramped up testing. The number of positive tests has remained below 5 . One of the big pieces is europe and asia where things are definitely giving us at least hope that it could be repeated here europe and asia have avoided significant Resurgence New zealand has zero nothing how is that possible . Stronger borders. Some of these other places, no new cases in croatia, cypress and other places on the other hand, youve got texas, florida mixed bag. Also some news from the World Health Organization, officials there said asymptomatic people are not the case of spreading. It is not the primary path the w. H. O. Said more study is needed but governments should focus on testing and isolating people with symptoms and anyone who came in contact with them. One of the primary reasons officials recommended social distancing to begin with joining us now to talk about all of this is dr. Scott gottlieb. Cnbc contributor serves on the board of a loom gn illumina and pfizer. The idea that asymptomatic transfer isnt the path way we should worry about is it dangerous . Is asymptomatic transfer something you are concerned about . It is unclear if it is the primary path way but it is something we should worry about. They basically drew that conclusion by looking at Contact Tracing when they looked at what the companies did going back and seeing the contacts. When they traced those individuals, they didnt find any additional spread. They concluded that the asymptomatic individuals probably werent spreading the virus. We know people who are asymptomatic share the virus sometimes on the swabs, they have as much of the virus of those that are showing symptoms. We just dont know right now i dont know if we can draw a conclusion clearly there is some sim toe mattic spread. The thing i dont understand about the World Health Organization they seem to make thee proclamations somehow against what other Health Officials think. They came out a few weeks ago on masks saying you dont have to wear a mask. It is very hard for the public to know whats going on. Weve heard on the mask front was one of the reasons they said was not because they didnt want you to wear the mask but some countries, they still cant get their hands on the masks and they Want Health Care workers to get these first. How do you think about the way theyve approached this at this point . They make policy judgements in the wake of scientific analysis it is hard to couple what is being baked in to assumptions. That mask guidance was ant thet call to other instruction on their websites immediately, it was in option to guidance already on their website. I think that if they are going to put out a Statement Like this and get picks up as widely as this did, they should put out underlying data driving it and not just say from the surmiezed spreading and saying there is no or very little asymptomatic spread you can say a lot of reasons why that might be true we need better data than what the w. H. O. Seem to be basing it on to draw that conclusion scott, if they are right. Kids should go back to school, everybody should be we should be back to work. We shouldnt wear masks. The idea was that asymptomatic spread was the concern asymptomatic spread is a lot of the driving of the measures we took. We dont have a study that shows more illumination on that. We look specifically at the viral loads in the swabs and suggesting they spread it. If you have a lot of virus in your nose and you are asymptomatic, and you are likely to spread it or be contagious. A lot of studies looking at that question not looking at the population level of those responsible for further spread remember, also, a lot of this is from the super spreading events through the small number of individuals spreading a lot of the infection. It may be that these are less likely to be the super spreaders. If we can draw the conclusion about the policymakers in terms of the steps we are taking weve got one of these temperature monitors now it takes three seconds to stand in front of it, if you dont have a fever, we can assume asymptomatic is not clearly as contagious if you socially dance after you go through the Temperature Check and it is less likely if you are asymptomatic to spread and you do the social zans dancing that would make it very powerful to monitor those people coming in if they have 100degree temperature. There was a lot of studies looking at temperatures and people that presented with symptoms youd want to do a full health questionnaire. Looking at cough and diarrhea and things like that scott, looking through the increases weve seen and in places like texas and arizona. A lot of places that have opened up early ive heard several different takes out there. Some people pushing back and saying, no it is just that they are testing more what do you say to that . There is an increase. Hospitalizations are going up. We shouldnt be just looking at new cases. That said, we expected cases to go up when we reopened arizona has a large outbreak under way. 20 of all hospital beds are occupied 30 of icu beds. Texas in cities like houston where Texas Medical Center is reporting more cases than the city of new york right now we seem to have made a policy decision well tolerate a higher spread here. Other countries continue to drive rates pretty low hoping that we can manage through it contain it through better testing and preserve life through better treatment of individuals. So the death rate should come down but well toll rerate a lot of spread heading into the summer and fall well be very reluctant especially ahead of an election. Well be doing a lot of ways to mitigate but tolerate a persistent spread that seems to be the case that will be higher than other nations. Thats one reason why consumer activity may not rebound we may have that sort of 80 economy where people are still pretty cautious about what they are doing and engaining in the economy. On that level, i dont mind not seeing others. It is my kids. My kids when other kids are hanging out together hanging out. Am i a bad parent for keeping him back from some of those things should i loosen up it depends on having a cohort in terms of a social network outside is safer than inside i think schools will open in the fall there will be attempts made so that they are not intermingling with the entire student population how contagious are kids and susceptible. They appear to be less susceptible and less contagious. We should have better data sweden kept its schools open that was an opportunity to do some largescale studies of wha the implication was. We didnt do it. World Health Organization didnt do it. We are missing a lot of opportunities to definitively answer a lot of questions that would really change our personal behaviors but our policy decisions. Dr. Gottlieb, thank you we appreciate having you hear sort of holding our hands through this and walking us through these questions. Well see you back here tomorrow yeah, we dont want to touch him. Holding our hands remotely figuratively. No offense, scott just go like this and go through it we need it Everybody Needs a little more. We know that coming up, america getting back to business. We head to break, take a look at the biggest premarket decliners in the s p 500 all energy mostly American Airlines is there too squawk box will be right back. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Small Business Owners are considered the back boen of the economy. A new report on main street economy. Looking for green chutes, the nib has some good news increasing 4. 5 points to 94. 4 in may. Biggest increases were seen in expected real sales, plans to increase employment and increase inventories. Key because it hit a new historic low last month. The only two that dropped were current earnings trends and job openings the biggest was poor sales follow bid labor quality and taxes. The top concern for main street more than a year pointing out racing Savings Rates with a lot of pent up demand consumers will have to stay safe in order to spend the money to shape the pace of the recovery back to you. I figure that small Business Owners lean towards optimism it has been tough. You dont want to be unrealistic. Have you see a pessimist starting a business . Probably going to fail i dont expect to be here in a year you know, they are basically optimistic if there is anything that gives them hope, they seize on it. Thats really true. For many of the businesses that had been around was them saying weve survived worse like living through 9 11 going through the last recession. Many of them held on to hope and lessons learned. There was a lot of frustration around waiting for that ppe money. Now it is about wanting to use that and the flexibility around that one thing the nib was pushing towards and would move forward it is kind of heart warming and then makes me feel bad for how tough it has been just staying closed and not having enough money for your employers coming up, more on squauchl this 340r7k. Stocks looking to pull back after six straight sessions for the dow. Take a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. What do i need from a partner right now . An insightful outlook that comes from experience navigating multiple bear markets. Can i find a partner to help guide me through this uncertainty . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to squawk box. Futures pointing to a little pull back. The s p 500 has now erased its losses for the year and the nasdaq closed at a record. Some of the names pushing higher tesla, ebay, paypal, microsoft, amazon and alphabet. Here to talk more about the rally, and our own mike santoli. Julian, it is as if theres been nothing. We erased it all. What do you think . Caller in the longer term, we do think there is more to go. The fed has set the system on the term we get going. And with medical progress, we do think there is more to go. You have to step back and say to yourself in less than four months we have seen two complete market cycles that often tear two years to unfold. With full on panic in march and massive liquidation and to where we sit today, you actually have seen as counter intuitive as it may seem signs of euphoria record account openings of zerofee online trading and something we thought wed never see. Buying billions of shares sending prices up 100, 200, 300 , stocks in theory would be worth nothing. Those would cost in the market. Explain that. Those points fascinate me. Companies like hearts who have filed for bankruptcy and the stock has gone up when the equity is supposed to be worth zero caller it is speculative behavior something, for me, that we saw at the end of 1999 and 2000. That certainly did mark on the bullion which granted the flows do not reflect but you are seeing it in the stock price reaction and it really doesnt make rational sense. We talked about cycles and where we are julian talked about going through the new cycle in the next two months. Is that the right way to think about this i think there are absolutely elements of a new cycle. We went from full employment to massive employment and well have to pick up at that store of new workers. At this point, if you are down more also an extraordinary set of circumstances. It is not just the fed petered out. Not just the kpangs but this is obviously a shock and preintervention to make sure those didnt come in there to spin out towards the down side it doesnt matter what we call this thing it was a crash in a mature bull market it doesnt make sense to the drop of the bare market so to say but it didnt havethe kind of bare market behaviors an reckoning. Its off like 87 of Something Like 07 to 09. The stock market in displayed behavior has shown a lot of the hallmarks of an early bull market all the beaten down stocks have led the way to broad buying. All the signals about what this means are generally positive just very overheated and stretched on that long term it doesnt make a lot of sense on the equity but seeing on the nonbankruptcy stocks giving the market a lifeline because it is basically an option on the continued survival i see where it comes from even though it does not make sense on those previous cases a lot of money a lot of money that finds its way to places it had to be when 87 happened, we were broken for years. Being a retail broker. It wasnt like this. I see what you are saying. I know what you mean. It took two years i was hoping this is going to come back because American Express was like 4 a share or something. It took two and a half years it was devastating and didnt snap back for years. Prices i dont mean the come back is similar but what i mean is it wasnt about the Business Expansion ending it was the financial shock in these circumstances. That was a real one and we still havent had a 25 down day. Thats the other thing it was 60 years before that that you had the crash by the way, i was in high school. I wasnt a stock market but in 74, it was a sickening grinding much like in 02. Right thats all thank you well talk to you very, very soon becky . Thanks, when we come back, much more on the markets and what is sending futures lower this morning take a look at biggest premarket decliners exxon mobil leading the way probably not surprising given the expanding. Yesterday because of the opec plus cuts that they extended those cuts today, down 4. 6 dont miss our exclusive interview with ron bonar well talk about his take on the markets, tesla, spacex and much more knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. A newlywed. A guy who just got into college. 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Welcome back ibm says it is getting out of facial recognition in a letter delivered to congress, he said, quote, ibm firmly opposes and will not condone uses of any technology offered by other vendors for mass surveillance, racial violence not compatible with our values. Telling us the decision was business and ethical one as facial recognition did not bring Significant Resource the biggest player in that area is amazon. Will ibm continue to do that kind of integration work to the extent there are other suppliers out there that supply facial recognition. It isnt a huge business but an interesting one. As Technology Evolves and people talk about using facial recognition at airports and all sorts of other ways it gets used better get really good at being able to look at someones eyes if we are all Wearing Masks too. How do you do it can you do it with just i forgot about that we talk about when you put the phone up to your face if you are wearing the mask, you still have to type in the password. I can recognize people at the super market and people can recognize me a lot with the mask on which ruins my whole, i dont know who you are i dont need to talk to you. You dont know me. I dont know you it ruins my literal social distancing abilities knowing that they may know it is me. Saying hi didnt mean you have to give them a kiss just say hi. You know, you got to go through all the small talk just there for food. What do you think of the idea that ibm wont do it and other companies . This is sort of in line from what you are seeing at maven remember google got out of the different business in the military you know who is not getting out of it . Excuse me the chinese and other countries. The chinese are way ahead of this on the ai they are leading the way it didnt happen in 1984 but it sounds like something that was going to happen in 1984. It sounds very orwellian number one, there are cameras everywhere everywhere pointing to this guy, this guy it is kind of weird that this is the kind of world we may live in invasive. Coming up, boeing down almost 30 for the year but rallying in the last week like 55 or something now up 150 from its march low im trusting the math there. It was at 89 we are talking about the future of aviation. I think 150 is more than double we head to break check out the shares of tiffany. The retailer reported an unexpected loss. Comp store sales are down. Squawk box will be right back. We hope you find these Digital Solutions helpful to bank from almost anywhere. Deposit a check with your phone or tablet. Check balances, pay bills, and more. Send money to people you know and trust with zelle. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. Welcome back bowings big run is helping fuel market rally stock has risen 150 from march. Much of that gain in the last three weeks. Increasing by 62 billion. The stock contributing to 710 points of the dows gains, nearly one fifth of the overall gain i think this stock managed to confound every single bull on the way down and every bear on the way up everyone looks like theyve got egg on their face with this one. Going back to may 12. Why . Thats when boeing ceo did an interview on the today show and said, im not really sure one of the Major Airlines is going to make it. That was it, everybody lost it and said here we go. The stock went down. It made a lot of people say, okay, lets look at the airlines one of these is not going to survive. Look at the big four since may 12 theyve all had thats the focus whats going to happen with the airlines in terms of orders. When you look at boeing, so much is being driven with what happens with passenger levels. Its up to 361,000 on an average last week. Well off the 87,000 low we saw in april in terms of aircraft orders and the reason were talking about it, well hear from boeing about their may orders year to date through april, negative 516 and they have had negative orders for four straight months. So four straight months where theyve said our order book is coming down. Max cancellationcancellations, totaling 299 through april later on today we will get the may orders and deliveries from boeing nobody is expecting positive numbers. Remember we heard from airbus on friday they were negative we will likely hear more bad news from boeing in terms of its order book and the lack of orders out there in the market nobody expects this to have affect the stock market. Youre right, becky, it has confounded people. Thanks, phil. The efficient market theory. Its either worth 89 or 250. One is because were factoring in everything we know using all of the power of the collective wisdom of all of the marketplace and its somewhere between there. The data points have not changed. Were going to talk to ron epstein about that theres no way to explain this rationally, ron. What i would like to ask you, from the darkest days, what has actually changed whats going on in boeing. They had the nice big debt offering, that was obviously successful whats really changed between 89 a share and where it is today . In the fundamentals, honestly not a heck of a lot like phil said when you look at the aircraft order environment and pass sen girl traffic if you look at the tsa data, at the worst we were down 96 year over year. Now were still down about 86 so it wasnt heroic to call it down at 96 . We hit the bottom. Were slowly coming up weve always expected air traffic to get back to 2019 levels in its in 2023 and i think thats a preddy broad expectation. Were not out of line with that right now. Everything were seeing from the airlines in terms of air traffic is consistent with that. I think what has changed and has fueled the rally youve talked about this boeing has been trading in line with the other airlines. I know i saw this in the companies i follow the companies with the most stretched Balance Sheets, the companies where there was the biggest worries about liquidity are the ones that have led this rally in the last week or so, last two weeks if you look at boeings gains, they had the biggest gains in the last week or so. And then it was led with the other companies that follow. I think the market collectively said, hey, maybe these companies have enough liquidity. Maybe theyre going to get through that and youre looking good with your 160 price target until the last ten days i mean, are you are people with you there at 160 . There are people much higher on the street are you ready to change that or youre big time short because you must be recommending a sell if you think its only worth 160. I think when you think about boeings valuation, you have to think about it this way. If you look at boeings total enterprise value today, that is their equity value plus their net debt, their enterprise value today is about where it was when we went into this pandemic downturn so boeing from an enterprise value perspective has fully recovered in its value from where we started so even though relative to the s p it looks like its under performed, it has under performed relative to the s p, but in an enterprise value perspective, its climbed back to the enterprise value about where it had before all this happened i think when you think about valuation, i think this is whats confounded some folks you have to say over what time frame . Are we all going to travel again eventually will there be some are you addressing your 160 price target are you comfortable with that . Are you going to raise it after you get off the tv now, keep it . Just give us an idea thats glaringly low for you think its going back there . Youre allowed to have that if you think were going back there obviously. When you think about it, like i said, joe, its over what time frame are you thinking i dont know. Today. Today its 225 youre at 160. I dont know im trying to figure out your thinking yeah. So obviously, right, i cant address that question here in this forum okay. But when we think about valuations of stocks, its always over what time frame and we do look at things from an enterprise value perspective like i said, boeing has claimed back its been a pretty spectacular rally. Yeah. When you look at price targets across the street, were all over the place i think probably if you talk to the most bullish analysts theyd admit that they didnt expect the change so fast thats one of the hallmarks weve seen in this things stall off real quick and come back real quick if you look at an enterprise value today where it was before and whats going on do you think calhoun has a bounce in his step is his credibility as a manager has been part of this, do you think . And not going the bailout and Everything Else was a pretty good move. What grade would you give him at this point i think any manager when a stock heads down, well see where it goes. Obviously the call on the airlines, you know, its probably not well see what happens. If i were you, i would have raised my price target to 225 this morning right before you came on so its on the chart ron epstein, 225, b of a, boom no okay thats just the way i would probably do it anyway, thank you. Thanks, ron, well see you again soon andrew okay coming up when we return, liesmania. Well talk about the feds next move and were going to talk we are about a half an hour away from our interview with investor ron baron. A conversation you dont want to miss squawk xetnsita g ur ahead wh bi precisely what they wan, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Under pressure futures pointing to a pull back this morning following a record run on wall street the next move goes to jay powell investors look to the central bank for more stimulus life in the fast lane. Shares of tesla closing at a record high. Well talk about the companys future with longterm future ron baron. Second hour of squawk box begins right now. Good morning welcome back to squawk box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. Futures giving back a little bit of the gains dow off 294 points the s p 500 looking to open down 30 points. The nasdaq off 54 points what a run it has been the feds twoday meeting beginning today. New cnbc survey showing Market Participants showing trillions more for both the central bank and congress for that we want to get over to Steve Liesman to walk us through what may or may not happen steve. Reporter that is the expectation of markets you can argue how much of this most recent market run has come as a result of all of the stimulus and the expectations for more stimulus. Lets take a look at our fedspectations 76 say more will happen and more will come from the Federal Reserve. How much more . 2. 8 trillion is the average growth in the Balance Sheet. The Balance Sheet at 7 its expected to go up to 9. 8. The fed funds expected to remain low. 0. 11 . Thats a zero to a quarter where the fed is all the way through the end of 2021. What more will the fed do . First is this databased forward guidance, keeping rates low until certain economic metrics are hit. 51 . People could pick more than one. Thats why it adds up to more than 100 42 expect additional quantitative easing. 29 expect bond yield caps the fed is likely to tie the ford rates guidance to inflation. This will have the effect of anchoring the front end of the yield curve. A district of vermontish fed remains the name of the game for the foreseeable future i count 2. 7 trillion of appropriated money from congress 54 say its less than it needs to do. 20 say its about right 27 say more how much more needs to be done 1. 5 trillion is the average estimate of our respondents for how much more congress will appropriate from this point. Who needs more help . 93 picked state and local governments. You could pick more than one in this response. Small business, 70 . Workers, 50 say they need more help and minority communities, 40 . Most responses came after the jobs report. There was some optimism in the survey with lynn reaser writing the u. S. Economy is resilient. While this downturn has been exceedingly deep and widespread, it appears to have lasted just two months that comes before yesterday the nbr declared we are officially in a recession here. Andrew ill take it, steve i think you know this economist pretty well and similar comments from lynn reaser for more on the feds role in the markets and what to expect from its policy setting meeting, we are joined by anett anetta markowska you said some interesting things here i want to start with your notion that you use google mobility and homebased data to try to find the exact Inflection Point when things turned and it was april 10th for you, which is earlier than we would have thought it helps explain the risk pretty well, does it not . I think it does you know, it wasnt just about the fed. Weve had a clear Inflection Point in Economic Activity that actually began just days before that april Employment Survey week would he saw subsequently a pretty significant improvement between mid april and mid may. In hindsight we should have paid a little less attention to jobless claims and more attention to some of these alternative data services. They show Continuous Improvement so so far they got both pretty well for june employment and for retail activity as well both in may and june. So dont look at claims but look at these alternative sources. Youre talking about google mobility and homebased data thats where you might find more relevant info . I think theyve been very relevant in retrospect they told us a much cleaner story and much more consistent story with what we saw in may employment numbers. Claims for some reason gave a very misleading signal if you asked me a week ago whats my favorite Economic Indicator and what to watch right now, i would have said jobless claims they clearly failed us last week they are painting a much weeker picture in the labor market than what we saw both from the adp as well as the household and the Payroll Survey still Pay Attention to claims. It seems like theyre still running weeks behind were still trying to work through the bottlenecks and, yeah, i definitely will be paying a lot more attention to some of these alternative data sources. Anetta, if people had done that, the disconnect that was so widely publicized between the underlying economy and the stock market would have been easier to understand you dont think it was just the fed. You said theres the fed plus the result of that fiscal stimulus as well thats not everything. There were things happening to explain it that were real and not sort of ee femme err rel like stimulus and the fed . Change turned clearly positive around mid april and the actual level of Economic Activity there i think we still see quite a bit of a disconnect between the market and economy weve had one great employment report and thats one great data point. Were still short quite a bit of jobs we still are looking at double digit unemployment 16. 5 if you adjust for that classification error and weve still got inflation thats moving in the wrong direction. So there is still a gap between the market and the economy and i think, you know, as we move through the summer months, theres still a question whether we can sus stap that positive momentum that weve seen over the past two months, and in particular as fiscal stimulus starts to fade very quickly and actually go into reverse so theres still a gap and i think still myungest is going to be out of college no, almost by the time the fed goes off of zero. Youre saying four years at zero and what theyre going to use is a target of 3. 5 unemployment . I thought that was sort of an outlier in terms of historic employment levels, but you think that the fed will wait till full employment gets to i mean, that is full employment. All the way back there and that could take four years, stay at zero until then . Yeah. So let me explain why i think we need to get to 3. 5 before the fed lifts off. The last extension they lifted off when the Unemployment Rate hit 5 and that is precisely what the fed believes is full employment. That has slowly come down over the past, you know, seven years or so. If you look at the feds last set of projections, they thought full employment was kind of more at 4 , right so they shouldnt really lift off until then if you believe that the fed really is going to make a move to an inflation makeup type strategy and they really want inflation to over shoot, then they shouldnt lift off the second we hit full employment which, again, right now is around 4 . So i think theyre going to wait even longer this time around to allow the labor market to hit a little bit more. I think its going to take us four years to get there. That would be my best guess at the moment zero rates arehere to stay for quite some time. Okay. All right. Four years hope i see it, anetta. Thank you. We appreciate it thanks for coming on well have you on again before the fed moves hopefully. Andrew hopefully thanks so much when we come back on the other side of this break, legendary money manager ron baro baron is going to join us live first as we head to a break, check out this mornings biggest winners and losers stay tuned youre watching squawk box right here on cnbc ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back, everybody. Macys out with preliminary numbers. Elgts out at 2. 03 a share compared to the current estimates. Macys says that it expects to finalize its quarterly numbers on july 1st after it gauges the full impact. That stock up about 11 this morning based on that news and, again, this is a stock that has had a very long run or a very sharp run up, i should say, off of the lows. Even yesterday it was up by about 77 . You can add this additional 1 5 10. 5 to that. If you look going back to the chart in january and just around there, it was 17, 18 a share at that point it just shows you, again, the quick draw down and now kind of the run back up for some of those issues joe . Amazing coming up, accenture is one of the largest employers ron baron is going to join us. Hes been a big backer of tesla and elon musk. That stock hitting an alltime closing high yesterday whoa 943. Not even going to bring up the teslackers well talk about it with ron baron at 7 32 eastern. Stay tuned neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Makes it beautiful. State of the Art Technology makes it brilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Our next guest is one of the largest employers in the u. S joining us is accenturess ceo julie sweet. You penned a memo or note that you posted on linkedin just about a week ago now, maybe a little bit longer, about what the company is doing and how youre thinking about trying to diversify your work force. Youve been trying to do this for some time. It sounds like youre trying to do this in a more programmatic way i would say. How are you planning to do this . Thanks, andrew. In 2015 we published for the first time our demographics by race and weve made progress since then because we had a plan and held ourselves accountable our progress has not been fast enough and we know we need to do more weve announced three sets of actions that will, we believe, accelerate the change. First of all, by september 1st we will set external goals for the u. S. By 2025 for the overall percentage of africanamericans and hispanic americans at accenture and in our leadership, which is very important. This follows the roadmap weve used to make more rapid progress with gender and setting goals for 2025 the second thing were doing is we are introducing mandatory training to identify, speak up and report racism. This builds on our unconscious bias training which is already mandatory, but its different because racism is not unconscious bias and we believe we need to call it what it is, acknowledge we have it inside accenture and finally because black lives must matter inside accenture and outside accenture, we are committing to work collaboratively with government, other leaders and the not for Profit Sector to make more change in the communities where we work and live and were publishing these actions to continue to hold ourselves accountable. Julie, you know, theres been some chatter about Big Companies like yours using whatever power and influence you have to not just do what youre trying to do inside your own company but actually do it to your clients and to force them to actually take some of these steps have you thought about that . Well, i dont think any of us can force another company to take actions what weve always done is to make sure that what we share our values and so lots of our clients, we do things together with them. And i think as you take a step back as to whats happening in todays you know, in todays environment, is you have Many Companies who on their own are making important statements to not be silent. And i think as Corporate Leaders we need to now help hold each other accountable and the organizations like the Business Roundtable and of course i would encourage you and your colleagues to help hold us accountable as well because we need to have sustained change far after the protests that we see today have ended what do you tell fair and accurately, maybe this is going to sound like a crazy question i think we talked about this once before. What do you tell some of the, frankly, white employees in your or the majority of your employees in your company about this issue and the reason i ask that is because you go online and you see and i find it gross but ill just tell you, there are people out there who are upset because they think theyre going to get passed over. Well, first of all, we First Published our demographics because we were asking our people to make change and we thought it was important that we were transparent about why and Transparency Builds trusty think with everyone. Secondly, what we have found is that the pie expands, right . Growth comes from diversity. We first doubled down on diversity in 2014 focusing on gender and weve had a 9 Revenue Growth since then and finally what we have found, that the best people of all races, the most talented come to companies who both create value and lead with values and so we have found that peo e people that really resonates, both the challenges, the impact on revenue and they want to be a part of the company thats focused on these things. Julie, its important work. Im glad youre doing it i appreciate you joining us and i hope you come back and talk about your progress and talk to us. Absolutely. Thank you for shining a light. My favorite leader says with light comes heat you bet you bet. Jewely sweet, accenture. Still to come, andrew, on squawk box, tesla bull ron baron. Will he join us live he hasnt said much during this downturn in fact, hes said nothing but we can tell you where hes been, what hes been thinking through all of this and well get to that in a few moments. In the meantime, there is a pull back. Just yesterday the dow was up by 461 points after the gains that had been logged the five days before that. This morning its given back 300 of those points. S p down 30. Nasdaq off by 68 you are watching squawk box here on cnbc okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Joe, the fed did promise to use the full range of tools to respond to the crisis. Little did we know that would be using the tools to fix the new york subway system the new york transportation is first in line to tap the feds liquidity facility theyre going to get 5 billion initially the mta didnt qualify because its not a government. However, it did argue that it is one of the largest muni bond issuers. Yield spreads have tripled and the april revenues are 30 lower than expected. In particular the mta is looking for the fed to back stop 30 billion in transportation Revenue Bonds that have already been downgraded three times since the pandemic began to help it called on some powerful friends including the top senate democrat, chuck schumer, who reached out directly to fed chairman jay powell as well as treasury secretary Steven Mnuchin for help the push has paid off. The fed relaxed its rules last week making the new york Transit System eligible to tap this fund in a statement schumer told us the Federal Reserves expansion of the Lending Program to include the mta was not just a new york necessity, but it will be an economic live saver. The mta did receive 3. 9 billion in federal aid from the last coronavirus help they believe its not enough back over to you ylan, thank you for that report meantime when we come back, our newsmaker of the morning, tesla shareholder ron baron is going to join us with his take on the companys record run to highs. Subscribe to squawk pod. In depth interviews, behind the scene ceacss and so much more. Youre watching squawk right here on cnbc this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Up next, ron baron will join us to talk about the rally and his investment in red hot tesla. A check on the futures after lots and lots of gains, youre looking at the dow down by 307 points this morning s p down by 32 the nasdaq looks like it would qu0 inown by 7pots sawk box will be right back. A unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. 58 million latinos live in the United States. If we all participate in the 2020 census, we can ensure fair funding for our schools, libraries, hospitals, and other public services. The census is safe, its confidential, and our community is counting on us to do our part. We know who we are and how vibrant our community is. Lets make sure our nation knows it too. For more information, visit getcounted. Com, and to participate, go to census. Gov. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back, everybody. Lets get to our big interview of the hour, ron baron its great to see you. Becky, great to see you almost. Almost. I know its a little difficult but you and i have been talking a lot over the last couple of months i know you have been pretty optimistic about the markets eventual return, but you were a little reluctant to come on air and talk about it. Why dont you talk about why youve been optimistic and why you werent willing to Say Something a little sooner. I wasnt willing to Say Something sooner because i didnt want to appear that i wasnt empathetic, i didnt understand what was going on so many people enduring so much pain and suffering and i felt uncomfortable being optimistic in that kind of environment and i am optimistic. That was the problem i had in coming online sooner as far as the reasons im optimistic are forward looking when joe was talking this morning. He spoke about Small Business people and how they are optimistic well, i was a Small Business person when i started this business in 1982 and when i came to wall street in 1970 i was not a business person, i was just in debt trying to pay my rent and so i have optimistic genes in my nature in addition to that, in the 1960s, 66 to 69 i was in law school at night and i worked on a scholarship and i worked in the Patent Office in the daytime. I told them in 69 i wanted to become an investor i want to become an analyst. First you want to be a doctor, now you want to be a lawyer, now you want to drop out of law school one semester. Now you want to go to wall street my uncle said, before you make that decision, i need you to read this book its by joseph branville i insist you read the book big book about daily strategy for making money in the stock market and so i read the book and what was shocking about it was that it said youre supposed to this gets to the point about why im optimistic about investing. It gets to the point where he said, you know, whenever theres really bad news, youre supposed to invest. Youre supposed to invest when times are bad. That was the premise of this in fact, during my whole career thats been the right way to go. I started in 1968, the dow jones was 1969 the dow was 1,000. Its now 26, 27,000. The gdp of the country was 850 billion. Its now 21. 5 trillion its up 20 some odd times 7 a year compounded. In that period of time theres been 9 11, theres been a financial crisis, theres been covid. 1987 stock market crash. 1982 when i started baron capital the Interest Rates were 17, 18 a year and im starting a business coming into a recession. So this country has endured wars warren buffet talks about this, depressions, crises, but every single one of them that comes about soon afterwards we recover and we go on to new highs. Whenever they have these sort of events what happens is the media gives great attention to terrific investors and they all seem to come out and have negative views whats amazing to me, theyve been very, very successful yet time after time, stocks are too risky in which to invest over and over again its amazing i dont understand exactly how they have become so enormously suggestful, but they have. Clearly theyve taken risk that they feel is inappropriate for others to take or they think that by sounding negative that sounds smarter than if you just blithely roll along and think everything is fine i dont think everything is fine there are a lot of problems we have they have to be solved they will be solved. Im not a politician or anything, but as i said, 1969 there were students in the streets about vietnam and civil rights and we were about to enter recession and stocks were going down again, the dow jones was 1,000 and its now 25 times higher and the economy is 21, 22, 23 times. So i think whats next is going to be faster growth in the next period of time than it has been before and what youre worried about right now is whether or not we could conceivably tip into something much worse than a recession and a depression and how am i assured that thats not going to happen . Weve just been true ten years ago a learning experience and we have learned from that and this time around we now have Interest Rates that are virtually zero, we have the government normally spends 4 trillion a year and what they did this time is that and 2 trillion is mandated social security, defense the other 2 trillion the Congress Negotiates for a year to spend 2 trillion this time, you know, fortunately for us the president and the congress came up with a bipartisan, you know, way to address this and in a couple of weeks they spent 2 trillion amazing. Then they said more to come. And then programs. Then the Federal Reserve, president has been pushing for lower Interest Rates what do you know Interest Rates are the Federal Reserve, Balance Sheet of 2 trillion went to 4. Now the Federal Reserve is 4 trillion to 7 on the way to 10 what that means is the economy isnt any bigger, you have more dollars which makes all of the savings you have worth less. The value of money keeps going down 3 or 4 a year. This time with all of that money out there, sooner or later they will accomplish their objective of getting the value of money down so the cost of money is low. The ability to invest is everywhere and am i talking too much here . I cant get a reaction from you. No, we cant see each other because were not sitting next to each other. I do have a couple of quick questions. I can vouch for you. You have been telling me this the last several months. Have you put your money where your mouth was were you buying additional stocks did you sell any stocks . The argument that youre making right now is basically one that you should never sell. I know you were a longterm holder you hold most of your positions for more than a decade i know there are times when you have sold individual positions things like under armour come to mind what would cause you to sell in some of these situations and what have you done with your money over the last several months fundamentals change, then i you know, then we sell. In times like this when we have an opportunity to realize losses because were always buying, and if we have an opportunity to realize losses, to shelter other gains and swap into something that is equivalent, close to, higher and got to a level that is more attractive now then what we do is take something off the table or sell it if the fundamentals are negative and we realize a loss and go into Something Else so the stock market right now, yesterday you had stan dr druckenmiller on he was talking about Growth Stocks versus value stocks he said he missed the rise in Growth Stocks. Thats where we have most of our money invested and in value stocks, thats where he believes theres big opportunity. And for me, you know, we have the area weve been hurt so were up 8 or 9 or 10 we have a few up over 17 . High teens, 20 so what do we do about probably 20 some odd percent of our investments are in this travel and leisure area thats in hotel, equity, choice resorts. It could be hyatt and Penn National gaming. So we have these investments what happened is some have been amazingly punished with Hyatt Corporation the stock went from 90 to in the 20s in a week or two and because the Algorithmic Trading has given people a chance to panic bear markets used to take a real long time. It took people a long time to absorb the news and then to react and sell now you can sell overnight, of course, you dont get the price you want but you can sell overnight, quickly, sell everything they sell everything they drive prices to levels that are unbelievable in the case of schwab, for example, they were telling me the volumes they saw in Retail Investors were 3. 5 to 4 times what they had been in november 3. 5 to 4 times and he said, people are just selling everything investors are selling everything theyre selling stocks, theyre selling bonds, theyre selling gold, theyre selling everything to me that emotional reaction is something we see everything on television, those emotional reactions give opportunity for us when penn gaming, when the stock went down from 37 to 38, fell into below 10 and then at 17 they did a Stock Offering and we were very excited about it because normally i wont go into detail, but they have a big opportunity as far as Online Gaming so internet is enabling that and also in Sports Betting. They are going to be when you read about draft kings and you talk to fan duel, those are gaming companies, Sports Betting that they have to have licenses in the states in which penn has casinos in order to be able to operate there. They did an offering, 20 million shares, we bought 2 million shares at 17 stock is 35. When Hyatt Corporation went down from the 90s to 20 it went so fast i didnt see it trader calls and says, by the way, Hyatt Corporation is down and i said, wow, how did that happen he tells me. Okay buy me a couple hundred thousand shares by the time i bought them it was 40, 38 or something. Now its 65. When activision which is a company that we know and love and have been buying and it didnt go down very much but we continued to buy more activision so there are companies that when they are offered to schwab, weve been an investor since 1992 the original cost was less than 1 a share when the stock fell from 50 down to mid 30s, we added to our position in schwab what weve been doing all along, thats an internet enabled business whenever we have had opportunities, we try to take advantage of them. Then on the other side if something doesnt fit the mode anymore, parameters, then we sell it and especially sell it when we have a loss. I would like to have that loss to shelter future gains that we generate in our portfolio. Joe yeah. So, ron, your record is just speaks for itself obviously. I was thinking about, you know thank you. When i was a stock broker ten years you do learn something. You learn about what when you actually make an investment, you have to six months, a year, two years, youre in there you have to look back and you actually have a position where i dont think the media that doesnt normally happen with people that are just covering it the point i was going to make was as hard as it is to buy when theres blood on the streets, and it is really hard to do that, i think the other and so you should do the opposite of what youre feeling. How about when youve got a stock that you bought at 30 thats at 400 or at 60 and then at 90 or buy more of something thats already tripled thats the opposite of doing what the obvious thing is to do again. I dont think anyone has done that better than you you arent going to sell your tesla even though its over 900, are you . I would like to be able to get more money to buy more tesla actually i think that whats going to happen in that stock is that they will its much when people were selling it short for the past ten years and the stock quadrupled by the way. For the first nine years it didnt change much go up, go down there was a good reason people were selling it short. The reason was its very, very hard to have to start a car company. Almost impossible. You wouldnt dream that it would be possible to go out there and hire 50,000 employees and design cars and raise the capital that you need and have a brand that everyone knows tesla brand my grandchildren who are 6 and 8 years old, they know the tesla brand. How is that they havent spent a dime in advertising . How can you get a battery . They couldnt get batteries to go more than 100 miles on a charge before tesla comes around, now its 400 miles it will be way more than that ultimately at a reasonable cost when we started off a few years before it cost 100,000 for a battery. They could go a reasonable distance, 200 miles. Then it cost 30,000. Now its less than 10. Probably close to 5 before very long the cost of an internal Combustion Engine is 5 or 6 or 7,000 a lot of places are going to ban them wont be any cars. People didnt believe. The only way you could possible whether i believe, possibly come up with a good opinion is to go do the research yourself you cant rely on people to tell you what to buy or what to sell. When you talk about not ever going broke by taking a profit on the other hand, you never get rich by taking a profit because a good portion of what you realize you have to pay taxes. So my thinking what happens to those other billionaires you were talking about that have made a billion and then seem to fall back into the trap that sort of novice investors fall in . Why havent you ever gotten to that point where, you know, you decide, all right, im going to because it does seem to happen a lot you do sound smart when youre negative for some reason so why havent i . Of course i have i didnt start off to be a longTerm Investor i became a longTerm Investor because of the disastrous mistakes i made by selling stocks early or by not buying stocks the biggest mistake i ever made was in 1999 i would go visit jeff bezos i visited him two or three times in a year. I visited him two or three times a year trying to convince him, talked to him on the phone every month. We bought selave and i was trying to convince him that was a good thing for him to own. He didnt buy that idea and the stock when the chairman of the company was indicted for price fixing with christies and the stock went from 40, soth they bes, to where we saw it. We lost half of our money. The biggest mistake i ever made was seeing jeff bezos for a year up close and personal and not investing in it. How could i miss that . Netflix. So netflix, we were an investor in that when the market cap was 2 3w8d its now what, 200 billion i dont know i didnt invest. Fortunately for me some other guys in our office invested but i didnt i became friendly with reed. One opportunity i had, the stock fell 30 or 40 and i wasnt owning it. I sold early i made my 30 or 40 and i sold now the stock had gone a multiple of what i paid for t. It fell sharply. When they made that, then reed called and said, ron, this is your time. And i didnt even do that. The stock went up who knows how much afterwards. So i learned not to miss these things when i have Something Like a tesla, i told you a long time ago that i thought we would make 20 times our money in tesla. So far weve made four times i now think were going to make double or triple again for the next five years and double or triple again over the next five years. I think theresle ten times to go in tesla before i have to think about this spacex thats a private company we invested 180 we invested 130 million i think, 125, 130. Its now worth about 180 i think we made 20 times in spacex over the next ten years that is an amazing opportunity as well. You know, there was just something where you saw this rocket first time private citizens have ever made a rocket we did it. How did he do it he figured out that the rockets that you send up are normally a couple or 300 million thats what they cost. They throw them away fuel costs to get them into space is 200,000, 300,000. You throw away a rocket for 2 or 300 million crazy. What elon says is stop calling him elon instead of elon musk or mr. Musk gee, why are we throwing away these rockets . Why dont we use them over and over again this ship that we just saw go into space, that was something that had been used already five times. Got five more uses to come out of that one. The next rocket that spacex is going to be building will be used over and over and over again. So instead of doing it for hundreds of millions, they did it this time for 50 or 60. The next one is going to be very, very small their innovation was sending a rocket up and bringing it back down and landing it like they did in star wars. You land on the tail end and as other people said, its like dropping a pencil and expecting it to land on the eraser and stand up still first couple of times they tried it, it didnt work now it works now the opportunity that they have is that they will have these satellites that theyre launching now, tens of thousands of satellites. Theyre going to give you Internet Communications from satellites, its going to start this fall. The opportunity they have instead of a satellite, you know, something less than that, our guy can have very, very inexpensive satellites, a lot of them, and theyre going to be able to because of that have them last for some shorter period of time and keep replacing them and keep having up to date technology in the satellites all the time and have an enormously profitable business in spacex theres one point i want to also make that elon went to russia 19 years ago because he had these ideas about getting into mars and getting into space again he wanted to buy a rocket from the russians ultimately after negotiating they said, oh, no, were not going to sell you one. He said at the end of the day with the scientists, its all right, i think we can do this ourselves. And then they said to him, what are you going to do it with, a sling shot and then afterwards they launched this rocket and they got the capsule to the space station at 17,500 miles an hour in space autonomously connected with the space station and so afterwards hes on a program, hes being interviewed and he says, so howd you like that sling shot . And the reason for that, that was the reference to what he had the russians had told him 19 years ago youre going to get up there on a sling shot yeah, he did its perfect. How do you like them apples, right . Right. Ron, we are almost out of time i want to circle back to something you said moments ago about Charles Schwab you own a stake in that. Their Retail Investors volume went up 3 1 2 to 4 times that means the people who got sucked into this are the mom and pop Retail Investors who now have sold at the lows and watched stocks come back up. Is there anything that you can tell them to figure out how to weather this, anything that you can kind of pass on . Well, there was something in the paper yesterday that said that 32 of people were bullish, Institutional Investors. How can you expect Retail Investors to be more bullish than they were last week in barons they reported that they were 9 billion of redemptions that month. So the only thing i can think of is that what people should do is what buffet said, either find a good fund that beats the markets, and our funds 98. 6 beat the markets find that or for yourself, just buy index funds and just buy them regularly every month dont ever be worried i tell people, dont be afraid. Whats going to happen, youre going to make 7 your money. The market goes down can i give you one more thought before sure. My idea, its very, very hard for people to do this themselves they should get a professional advisor and they should invest in mutual funds, etfs, something. They shouldnt do it on their own. They cant possibly react. Institutional investors dont get it right they should have somebody try to do this who studies this you wouldnt want me to be your dentist, i wouldnt want you to manage money for me. Let me give you one other thing point, that in tisch and jay pritzker became wealthy in the 1950s and 1960s after they realized that the interstate highways were going to allow businesses like mcdonalds and others were going to become big. They bought property in california, florida, orlando that would allow them to build properties so the interstate highway and airlines were enablers the internet is now an enabler the internet is whats going to make many businesses become very, very successful. Whether its activision with their games, whether its the msci you need, spotify, shopify. These are companies. 80 of our business is invested in companies that are Growth Companies. 20 or so, thats the area that got hurt thats the area that i think is going to take two or three years to get back to where they were in november in february of this past year so two or three years to recover and theyre selling maybe half price, maybe down 30, 40 . Thats where youre going to get in the next three or four years. You get back to where you were the other Growth Companies, theyll keep growing theyll get back to where they were thats the big opportunity in the short term is investing in some of those companies that have been hurt the other side is keeping those investments and Growth Companies that may be a little bit high right now, maybe theyre not, they are going to be the opportunity in the future. Tesla, thats going to be 2 or 3,000 in five years and multiple of that over the next five years. Ron, want to thank you so much for your time its really good talking to you as always. We appreciate it and we will talk to you again soon thank you very much for inviting me. Okay. Take care. When we come back, we will be speaking thwi shelly more capita squawk box will be back after a quick break. 2012 . And even now, many experts predict the next gold rush is just beginning. So call us money reserve, the only Precious Metals Organization Led by a former director of the United States mint. As one of the largest us gold coin distributors in the country, us money reserve has proudly served hundreds of thousands of clients worldwide. There may have never been a better time to start diversifying your assets with physical gold and silver. And right now its easy to get started. Pick up the phone right now. Call to receive the complete guide to protecting your hardearned assets. Dont put it off another day. The call is free, and youll speak with one of the us money reserve account specialists who will get you your free information guide in the mail right away. 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With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, us money reserve is one of the most dependable gold distributors in america. Stocks rally. Positive territory the jobs gain forced into this senator shelly moore will join us the chairman dick parsons talks about how the country can begin to get to its highest ideals the final hour of squawk box begins right now. Good morning Andrew Ross Sorkin and becky quick. Down 280 points. In the amount were up on the dow for me and its 1. 7 and 1. 8 typically. Theres a pull back. Whatever you want to call it wouldnt be that surprising. More these days were still watching the yields were headed towards a gain of 1 the loss smaller. Getting along with this range back on may 21st macys at 4. 5 million its at 9. 5 exclusive interview. Take a look at the shares of tiffany. The forecast the store closings more have anticipated. Thanks, beck. Day two of new york, nonessential stores its a pickup. West virginia. Well learn more about reopening across the country were joined now by West Virginia senator shelly moore capito. Its way under it theyre opening parks. And casinos and movie theaters isolate that area im excited about meeting this challenge. Yeah. Were all looking back on how different states handle things and i guess one of the things you dont want to jump to any conclusions, its not over yet, but maybe focusing a lot more energy on the atrisk segments of the population might have been a way to go, but weve never been through this before and everybody was trying to find the wayfor the first time. So in hindsight it looks like maybe that would have been better there has been a lot of economic damage and continues to be and maybe you avoided some of that in West Virginia. Right we did do it early we did, as i said, isolate another thing on monday, Little League can now practice. So families are beginning to reek some semblance of normalcy. I think that leads to not just an economic up tick but emotional up tick. Families feel like you can see the end of the light or the end of the tunnel where things are going to begin to get better we still have high unemployment. A lot of our folks are still closed our manufacturing has gone back. Im very encouraged by what i see and weve been able to restrict the spread at the same time. Senator, its difficult to turn states down that need a lot of help, but then i think about when the fed after the 08 crisis, we looked at the size of the feds Balance Sheet. Now look at it we thought 18 or 19 trillion in federal debt was going to be unmanageable weve pulled out all the stops and were up at levels in the low to mid 20s at this point is it time now yet to start saying weve got to start thinking about spending things effectively or do we still need to pull out all the stops to help states that obviously have been shut down and have no tax revenue . I think as you look at the general, weve put 3. 3 trillion in it. The ppp with the good news we got on friday to sort of point to that as a very positive note in terms of retaining some jobs and keeping our business doors open so i think nows a good time for us to pause rather than throw 3 trillion, like they have on the house at more and more programs, i think we need to sort of turn a little bit and maybe look, yes, recovery still, but more towards stimulus as we try to sustain the growth we see going on i think youre going to see us assess programs for the next three to four weeks. Work together to see do we need individual assistance, Small Business assistance and getting to the state issue smaller states, like my state, got 1. 25 billion but we dont have the loss, the covid related that say new york state does so its going to be hard for our governor to assess that as a covidrelated loss to the state where the cities and counties are really losing is their b o tax and sales tax. Lets let the state of West Virginia and others take that 1. 25 billion and backfill some of these lost revenues in our cities so that they can keep their essential services i think that makes total sense to me. Its no new money. Its what the governors have, its just giving them a little more flexibility do the reopenings in some of the other states, is that on everyones radar back in d. C. And maybe in arizona or texas or i mean, were all looking out there. Absolutely. I think we all recognize that the worst thing that can happen really is that you have to reclose because that would have just a devastating effect obviously on the economy but a whole bunch of other things at the same time. Thats why were moving forward with more robust testing were testing millions and millions of people a week. Our universities are trying to figure out a way to reopen i think thats going to be a critical turning point to seeing that we can gather in larger groups, monitor the spread and then face those challenges and i think youre going to see us move towards looking at that as we monitor whats going on in other states absolutely senator, we havent had a lot of Washington People on as much recently i guess id be remiss if i didnt ask you whether you think theres a federal answer to some of the questions that were trying to deal with, some solutions for whats happening in society right now is it a what can we do federally . Is there something there a police rule . Something . What do you think . I think there is something there. I think obviously this is a National Awakening were in washington, d. C. , where even where im sitting now, this building is totally boarded up and so its a stark reminder of, you know, whats going on in the last week but theres a lot of peaceful protesting still going on here in d. C thats great for peoples voices to be heard. I think we can look at National Police registries in terms of whats the past violations as a Police Officer had to make sure that, you know, different states are aware where you might be getting a bad apple. I think thats an issue. I think certainly that we are going to definitely come forward with a package you saw the democrats come forward yesterday with one this is something we can work on together its tough stuff and its difficult but weve got to make sure that justice for all is equal and has the and that were going into this with eyes wide open. I think if we in congress dont begin to talk about this together in a positive way on a national scale, i think we would be deemed a failure in the american peoples eyes because we turned our heads the other way. I wonder how after all of this were going to owe a lot of money. Were going to still be dealing with inequality and i know growth helps thereand a lot of times thats a goto answer for republicans. Are there things in the tax structure in your view that need to be changed now with trying to deal with the overall inequality problems or is that something the private sector needs to take care of. We gave the private sector a great opportunity through Opportunity Zones to begin to go to those areas that have been are less productive or are in a great downturn and in many cases thats where, you know, we see some problems developing either in our cities or in the rural areas where theres a lot of joblessness, where theres no hope and so to try to bring in Economic Activity into those areas i think is one thing we have done through our tax structure. Its been on pause because everythings been on pause over the last four months were going to get back to this. Ive been talking to senator scott whos been a real leader here to see if maybe thats a place where we can bring our manufacturing of our facemasks, where we found they were over in china and italy and germany and all of these other places, why not reconnect our Manufacturing Sector for the Health Products into the areas where we know we can we have people who are ready, willing to work but just dont have the opportunities so i think building on our Opportunity Zone legislation is something that i think will help some of these issues right hopefully well be well have some positive gdp in some of the quarters ahead, senator. That certainly were going to need that to deal with. I think were in for a long haul here. I think we all realize that. Thank you youre very welcome. Thanks. Great having you on today, becky. Thanks. When we come back, does tesla belong in your portfolio or not you heard what ron baron said last hour. Maybe you didnt either way, we are going to tell you. As the top Portfolio Manager, hes buying at these levels. Check out the futures in the meantime weve been watching dow down by 276 points below fair value. S p futures down by 27 the nasdaq off by 44 stay tuned you are watching squawk box on cnbc there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. We need to make 20 times more money in tesla. So far weve made four times i think well make double or triple again in five years and double or triple again in the next five years. I think theres ten times to go in tesla before i have to think about this if were right. That was ron baron, baron capital ceo. He was talking to us about tesla. Here to talk about investing, paul meeks, Portfolio Manager and investor at the Wireless Fund good morning, paul. Good morning. Would you buy the stock at this price you heard what ron baron said. He wants to get more he wants to start a go fund me page to get some more money to buy more. He was pushing it hard in the previous segment i admire ron baron he iss obviously a brilliant long Term Investor if you are going to step into tesla right now, you have to be long Term Investor tactically in the short term the stock is now approaching 1,000 per share and as youve seen many times in its corporate history, it will crack it will be brief it will give opportunities to buy it lower but right now i think its extended. Again, if you are a longTerm Investor, however, one of the things i have been impressed with tesla over time is recently as a year or two ago we were on pins and needles every time they reported their Quarterly Earnings to see if theyre going to meet their car delivery target most of the time they didnt right i have to give them some cred their Operational Excellence in the last year or so has really been impressive. This is combined with the continued bumbling of the Combustion Engine legacy car makers who have been slow to get to the eb market and bad on execution. Lets do it this way. I want to own the stock for the next five years. Im going to buy the stock i wont look at it again is that long term enough for you . Buy today . Yeah, thats long term enough i actually think you wouldnt buy it today because i am fairly certain, because this has been the roadmap, plus we have the uncertainty of the economy with the covid backdrop and their supply chain that you will get a chance to buy it lower, and i think you will get a chance too buy it lower maybe not in the feks couple of weeks but months. Yes, buy it is that a call on tesla or i is that a call specifically on tesla or do i kind of hear in there embedded in there maybe a larger market call as well both. Because larger market calls particularly after weve had this enormous run from the bottom, but specific to tesla, a Manufacturing Company that did have a shutdown in key operations for at least a period of time and an International Supply chain, it probably faces some of its own peculiar risks all right paul, on the larger market, theres a lot of people who are looking at the market, you know, move and it continues to move higher today we might have a little bit of a pull back. You know, a lot of people scratch their heads. Theres others that say, have i missed the train should i get on the train now . Should i wait for it to back up . Will it back up . Is it going to power higher . What do you think not just in tech land. I think theres a real question as to whether you want to be in the high Growth Companies which ron baron talked about or whether theres a bigger opportunity in some of the cyclic calls and others that have been unloved thus far im primarily a tech investor what i would tell you in the short term, i would probably bet on the cyclicals or some of the nontech stocks. Even within the tech sector the most cyclical of all are semiconductors and Semiconductor Capital equipment. So i may go there. What id like to see to feel more comfortable about investing in my sector and the broader market, i want to see us get pretty deep into the fall. We have businesses that are open for months, not just for weeks we have kids back at school and we make sure that we at least get into the flu season and not have a covid 2 then i will feel more comfortable at this market move, which has been extraordinary off the third week bottom in march is going to stick. Right the problem paul, you tell me, is people have bet the open, right . I dont know if theyre buying the open and theyre going to or buying the planned opening, will sell the reopening. I dont know how this is all going to play itself out, but if we actually do get into the fall without more cases, if we do get school back up and running, the question is how much more does the market have to run i think this goes to this whole question of when do you get on the train, right yeah. Its very difficult. Ive been doing this a long time and it, frankly, brings a lot of anxiety. Its a very tough call you know, you expect that the market will be a discounting mechanism will pull the future to the present you expect that, but its always a case of, you know, how much. I do think that we might be short term over extended but with all of the trillions of dollars of monetary stimulus, we do have an underpinning once were in the clear to have a very nice multiyear bull run in stocks. And then finally, its another company that is the sister of tesla. Its private spacex has an investment you know, actually, i think this is more interesting than tesla. What theyve done is extraordinary. It looks like they have the first run at it to put all of these satellites up into space, to provide broadband connection all around the world, particularly to impoverished areas. That is an enormous potential opportunity. I actually like what i see at spacex long term better than what i see at tesla. How hard is it to get your hands on private shares at spacex they typically have an offering every couple of years some of the major investors or some of the major Institutional Investors are with tesla like valley give fofford, they get f dibs very difficult. It was great to see you and great to get your perspective. We appreciate it looking forward to seeing you at some point in person nice to do it virtually. Joe, over to you andrew, thanks. Coming up, the need for diversity in thought and background in Corporate America. Its been said over and over now more urgent than ever. A former citigroup and time warner chairman dick parsons in the meantime, check out boeing on a tear thanks to hopes for more jet demand and a travel industry rebound shares have risen for six straight sessions. Up more than 50 in that time. Stay tuned youre watching squawk box on cnbc what do i need from a partner right now . An insightful outlook that comes from experience navigating multiple bear markets. Can i find a partner to help guide me through this uncertainty . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Try natures bounty sleep3, professional or consultant a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Still to come, more on what American Business needs to do to make itself more representative of allamericans including this question is big tech coming up short. We have some data you need to hear followed by special interview with dick parsons. In the meantime, the futures this morning giving back the gains they picked up yesterday dow indicated down 250 points. S p off and the nasdaq down by 49 dont go anywhere. Squawk box will be right back. When the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back to squawk box this morning here on cnbc. Here are some stories investors are going to be talking about today. Well be getting an updated snapshot the governments monthly jolts expected to show 5. 8 million job openings that will be as of the end of april compared to 6. 2 million the end of march the fed kicks off the regular twoday policy meeting today that will be followed by Interest Rate decision and policy statement tomorrow. So as well as fed chairman Jerome Powells post meeting News Conference all happening virtually i believe still. Sales of retailer Signet Jewelers taking a hit. Expected a smaller than expected quarterly loss a greater than expected 38. 9 . Joe . Andrew, big tech made a big effort a few years ago to disclose diversity numbers in annual reports since then theres been little change in Silicon Valley kate rooney. Kate rooney joins us with a closer look. That got three mentions, kate. Good morning reporter hi, joe good morning despite disclosing diversity numbers, for six years none of the megacap Tech Companies have made notable gains in hiring minority candidates. We looked at annual diversity numbers for big tech since 2014 facebook, alphabet, microsoft and twitter have reported low single digit increases in their black work force. Facebook went from 3 to 3. 8 over five years. Microsoft meanwhile saw about a 1 increase. Amazon is an outlier with an 11 point gain but that includes 650,000 warehouse workers making it hard to compare to other Tech Companies. The overall diversity numbers are even lower among leadership and technical roles like coders and engineers. Critics still applaud the transparency they say its an important first step important to Industries Like wall street that dont publish the numbers. Tech companies are data driven those i spoke with say unlike missing financial metrics, there havent been consequences if companies dont meet diversity goals. Tech ceos ring hollow until diversity numbers start showing up guys, back to you. Thank you very much our next guest says that diversity in the workplace is one of the issues Corporate America needs to tackle. Joining us is dick parsons currently a Senior Advisor at Providence Equity partners thats a private equity firm that specializes in media. Dick, thank you for being with us its been far too long since weve gotten to talk with you on air. How are you . Im reasonably well, becky, you and the gang were doing okay. Were hanging in there you know, dick, ive been thinking a lot about the roles that you take on i always think of you as a states man because youre somebody who came into time warner and took over as chairman and ceo in 2002 after that disastrous merger with aol then you took over at citigroup and then i think back to 2014 when you were the interim ceo at the l. A. Clippers and had to come in there after the owner, Donald Sterling, was forced out of the nba, banned for life after his company made racist comments you are a guy who fixes and heals and i just wonder as you look at where our country is right now where you look at businesses, how you would go about fixing and healing what you see happening. Thats a big question, becky. Theres probably actually the right section, how do we move forward . I dont think we can move forward from where we are without some fixing and some healing. You know, obviously like everybody else in the country, ive been watching whats going on with a sense not only of horror at the raw actions that are being taken but a real sense of frustration and loss because this isnt the first time by any stretch of the imagination im a little older than you and joe and i go back to 1968, this is the last time we had big riots in the country, early 60s and president johnson appointed something he called his commission currently known as the curran commission. They reported on the causes of the unrest and if you read through that report, it could have been written a week ago we havent really healed centuries old wounds and dealt with them in a way in which we could then pile on top effective remedial action so that we dont stumble over this rock again in another 60 years so what would i do well, thats a huge question i think you have to start with acknowledging the underlying causes of these kinds of flairups which, frankly, its painful to say it, but frankfully finds its roots in racism and deal with that as opposed to putting band aids on top of it. We need to get down to, you know, how people think and feel about each other how people think and feel about each other infuses all of our institutions and our actions thats what thats the thing in this daze days actions and they reflect on those feelings and those cultural biases. You have to get after that in order to make permanent change i dont know how to go about changing how people feel, how they feel about each other other than trying to get to know each other a little bit better. We have a lot of Business Leaders who have stepped up this week and said that theyre going to be addressing this, but not just give a talk a lot of them have also donated money and in some cases some pretty large amounts to try and get after some of the effects of that underlying issue. Trying to make sure that theres better access to health care, trying to make sure that theres better access to finance so that you can start your own business, you can get a loan to buy a house, something along those lines. What do you think Business Leaders should be doing here, dick well, lets start with health care provide Better Health care, better housing, better education. It has varied results, ill put it that way. After the curran commission in 68, done in the 70s, i dont think i would have made it as far as i made it, but i think that theres a part of the problem, a fundamental part of the problem that cant be solved with just money. And while businesses are shaping up, you remember when i was running time warner i got in trouble a couple of times for suggesting that a ceos responsibility goes beyond simply considering the chair holder my investors said, no, thats not right. Maximize value for the shareholders i think more and more and more Corporate America is realizing that Big Companies and small, to me you have several constituents you have your shareholders to be sure, but you also have your employees and you have your community and what youre seeing now is a lot of Small Companies that are steering their boat into the headwinds of dealing with employees as a constituency and community. And thats good. But thats going to be transformational in terms of solving the problem thats been with this country for centuries. I think not. I think you actually gave the headline where we have to get to know each other and appreciate each other and not be afraid of each other Going Forward or our society will still be founded on notions that arrive out of defensive inequality and all the money in the world i dont think is going to change that. Certainly not going to change it in your or my lifetime hey, dick i remember in 2014 when you were serving as the interim ceo to the l. A. Clippers. You joined us on squawk and you came on set with us. We were talking a little bit about it for those who dont remember, it was Donald Sterling made some incredibly racist comments in tapes to his girlfriend at the time saying things like she shouldnt be hanging out with africanamericans, black people, she shouldnt be making social media posts with them, she shouldnt be bringing Magic Johnson to the l. A. Clippers games. Somehow that video got out i remember talking to you about that, there was debate about whether he should be banned from the nba, whether he should be forced to sell the clippers. I remember the comments you made at the time was you said the line had changed and was moving very rapidly here we are six years later, a long time later. Just wonder where the line is now . How rapidly this is changing and either how tired you are of waiting for this or how optimistic you are about where we might be headed as a society. Well, thats a good question because its sure a dynamic process. I think at some level the line has changed a lot. People are africanamericans are now virtually everywhere you can find folks it may not be in proportionate numbers but theyre in the halls of congress, theyre running large parts of the American Economy in terms of being ceos of big businesses. Theyre police chiefs, theyre mayors, theyre all sorts of things, but not enough and as i sa said, there are still huge portions of the Africanamerican Community that their circumstances are no different than they were, as i said, in 1968, the last time we as a country really sort of resolved to look at this issue and try to do something with it while theres movement, its not fast enough and i dont think its profound enough let me just read you something youre a youngster you may not have rertd i dont think you were alive when the curran commission issued its report. After doing a study of what led to riots in detroit, new york, around the country the commission concluded unrest was a product of a wide range of racial and economic injustices ranging from inadequate schools and housing to poverty, wage excuse me poverty, wage jobs, and discriminatory treatments from police and the criminal Justice System as i said, that could have been two years ago. So that while there has been change and the door has opened somewhat for africanamericans to achieve, it hasnt been open nearly wide enough or fast enough okay. Dick, its joe kernen. Thats a point professor cornell west made that i thought was appropriate. Someone said you look at black middle class, you look at all the gains that have been made in corporations and you see, you know, we had a black president that was reelected. He said, fine, thats all great, but theres still unequal opportunity for a vast number of black children in urban areas. Its a glacial move sort of to try to improve that. My question to you is we had bob johnson on, Robert Johnson of b. E. T he was talking about actual reparations of 14 trillion. At the same time we had druckenmiller and the new incoming ceo of the harlem childrens zone on and we had jeff canada on last week im just wondering you could go big and scaleable on what theyve done with harlem childrens zone or maybe Opportunity Zones or you go even more shock and awe with what bob johnson is talking about what would you think is feasible what do you think would work what would be more effective hey, joe, how are you im great its good to hear from you, have you on today, dick well, as i said, i dont want to plunge necessarily this conversation into immediate controversy, but i dont think that this is a problem that money alone can solve. Right even if you go big. I mean, the government went big. We spent billions on the Great Society and there was a result, of course, but it wasnt what one might think if you had spent that kind of money to solve these problems you know, becky said something earlier that could it sounds simple but its at the essence of your solution unless we get to know each other better i once worked pretty closely with a guy named jack kemp who i know you know. Jack was an upstate new York Congress member and he was a quarterback and he was on the board of Howard University we had a conversation one day about his commitment to the cause and he said, you know, i didnt grow up with as a youngster with black americans because i played with them what i learned was when i got to know them, theyre no different than me really they wanted the same things for their family, themselves, laughed at the same jokes. I formed many good friends because of that association. I got to know them and the fear that most white americans have in the back of your mind about blacks went away so i think we have to figure out some way to introduce ourselves to each other, ill put it that way. Instead of sensitivity training, we ought to have get to know me training, get to know each other training where the believes that are locked in the back of peoples minds that are cultural and they infuse every part of this society because those things come out of that. Somehow we have to get it back its not just a matter of throwing more money into programs to elevate blacks now thats going to be necessary at the end of the day anyway youve got to educate people youve got to give them decent housing and Decent Health care but thats not going to be enough so, you know, i worry about bob. Bobs a good guy, a smart guy. Now equal your injuries are paid for go forth and multiply. I think the business in particular cant possibly put up the kind of resources that government can thats going to be needed to really level the playing field. So i think we need to do more than just try and buy our way out of this. Now having said that, dont get me wrong, the effort that lots of corporations are now making to really look at their communities are good and commendable. Im just suggesting dick, its andrew here dick, it occurs to me. Hey, andrew, how are you . Its great to see you, dick the question i would ask you by the way, i think youre 100 right which is you have to get people together and you have to get them together early and i think ken frazier whos on our broadcast and talked about being bussed frankly 90 minutes every single morning to school all the way across town, it not only helped him get a great education but created a different type of network for him and he talked about that the question i was going to ask you is at a business level whether you think that companies which put out these targets in terms of diversity on boards, diversity in management, what needs to happen there . And youre seeing Companies Like Goldman Sachs say were not going to take a Company Public unless they have two diverse board members. States like california put it into law, if youre a publicly traded Company Based in this state, we want you to have x number of people that was based on gender do you think we have to do this in a more systematic if not regulated way . Well, you used the term that for a business guy turns up a red flag, regulated way. I wouldnt be for that in a more systematic way, in a more intentional way, yes. It is good, ive served on any number of boards, its good to have diverse perspectives and voices around the board table. Essentially when youre the director of a company you have various fiduciary duties which are defined not only by law but in the common law and in common sense to the owners of the company as well as to the employees as well as to the community that means you cant sort of say we used to make shoes but now we ought to do Something Else to help move the needle in terms of diversity perspective. Im not saying it very articulately, but youre a diverse voice in a predetermined set of objectives and systems. So while while its good, again not the whole answer and i think what youre going to see, youre going to see more companies intentionally, with intention, diversify both their board and their senior management, but is that going to make a transformational difference i dont think so hey, dick, it occurs to me that this is all happening at a pretty inopportune time just from the economic perspective. It is far harder to lift all boats in an economic crisis and thats certainly what were facing right now, even though the market has come up, you are talking about companies that are not going to have the revenue that they anticipated for this year, you are talking about companies that are talking about laying off in mass to try to make up for that, pay cuts in other places trying to make this happen under that backdrop is much more difficult. We did see that the Unemployment Rate for the month of may was below what people had been anticipating, thats what we learned on friday, but within that in the Africanamerican Community it did tic slightly higher how do you make that happen with the added complication of that backdrop you know, thats thats the 64 question or 64,000 question i think you just pointed to some real world constraints we had a Board Meeting at he is stay lauder yesterday where im on the board and they have come up with a thoughtful approach to making sure that they do an even better job thats a company that happens to do a pretty good job on the diversity front, africanamerican women in particular, gays, lgbt, the sweep of our society actually, but the reality is because of the impact of the covid pandemic on their business prior to considering this issue the company had put in a hiring freeze, no new hires between now and the end of the year. So how do you feel with trying to balance up your employment scale when you have a hiring freeze and arent hiring anybody . A lot of companies are going to have to face that and i think it will moderate or slow down the progress with which were going to see a lot of American Companies at least move in towards a more diverse face to the public and internal Management Structure in terms of minorities you know, its going to be a challenge, but i think what will help is theres going to be more transparency, in other words, more ceos and more senior corporate managers will be talking about what the intention is they are going to be explaining to the Employee Base and their constituents including the shareholders what the game plan is Going Forward so that people can at least mark progress and understand through transparency whats going on that will help dick, i want to thank you for being with us today. Its really good to talk to you. Its been far too long and we appreciate your thoughtfulness on this incredibly difficult topic. Well, thank you, and, andrew and joe, nice to talk to you will of you, hopefully we can do it again sometime. I hope so, too. Thank you. Sooner than last time i cant believe how long its been since we spoke to dick. That was great coming up, whats private equity what would you do if you owned a lot of businesses in this environment, especially some in china . Stay tuned, youre watching squawk box on cnbc still to come this morning, what to watch when the opening bell rings at 9 30 eastern time. So far stocks are down dow down 327 points, stay tuned, you are watching squawk box on cnbc giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Joining us now to talk about trying to run businesses in this environment Henry Cornell of cornell capital. Unfortunately, henry, weve only got about two minutes left here, we had a long interview with dick parsons you are in private equity, you have consumer, industrial, business services, financial services, but a lot of it cross border and a lot of it depends on asia. It was tough enough with china and that whole situation and then all this other stuff happened, how is business and how are you trying to manage through this business a great. Great is difficult, but it was difficult when my partners and i started doing cross border in the early 90s we witnessed china turns from mall suits to blue suits, bicycles to cars and the greatest creative explosion in capital and wealth that weve ever seen. You had the asia crisis in 98, we got through that, you had the financial crisis globally, we got through that this is a tense moment in the negotiations between china and the states, affects the rest of asia and obviously affects both our companies countries, and companies we have invested in are basically coming from the states, investing in china or are in china and coming to the states so its a difficult moment, to be sure, but one that we are optimistic we will get through there will be some changes and some bumps in the road. Harry, im going to apologize to you, i want to talk about your individual business, i want to talk about carrell and instant brands and i want to talk about what its like dealing with not only the pandemic, but, you know, whether we move forward with trade deals and Everything Else. So weve got 30 seconds left, as i say, i apologize, youre not home, i hope, and maybe we can its not that hard for you to get back into this spot and maybe we can do it later this week or next week if youre available to do it. That would be my honor and after listening to mr. Parsons, frankly, much more important conversation at the moment very gracious of you, henry thank you. And we will definitely do that, i promise you. Henry cornell. Thats it for us today really, it is. Make sure you join us tomorrow those are futures, squawk on the street is next. Good tuesday morning, welcome to squawk on the street, im quintanilla with jam cramer, live from separate locations, faber will join us in just a bit futures suggest the bulls may take a break after the dow after the biggest 50day rally in s p history more commentary on the reopening from macys and others, oil below 38 jim, some say the speculation, especially around some of these quallser cap names, definitely needs to come off of the